This week, the crypto world saw changes in network incentives, a massive Bitcoin transfer from a long-dormant wallet, and the resurgence of meme coins. Here's a quick recap of the key events that shaped the DeFi landscape.

Solana Boosts Validator Rewards

Late Monday, Solana's governance community passed a proposal that significantly alters the network's fee structure. With 77% of votes in favor, the decision grants validators 100% of priority fees, a move aimed at enhancing network security and efficiency.

Previously, half of these fees were burned while validators received the other half, leading to concerns about "side deals" between validators and transaction submitters. Proposal creator tao-stones argued on the Solana governance forum that this change would ensure validators focus more on maintaining network integrity. Following the news, SOL's price saw a modest 1.15% increase, trading around $167.70.

Mt. Gox's $9 Billion Bitcoin Move

Over 140,000 BTC (roughly $9 billion) were transferred from Mt. Gox wallets to an unknown address. This marks the first movement of assets from the defunct exchange's cold wallets in over five years.

Mt. Gox, infamously hacked in 2014, has long been a point of concern for analysts who believe that repayments to its creditors could add selling pressure to bitcoin's market. However, Alex Thorn from Galaxy Research suggests most creditors might hold onto their BTC rather than sell.

The transfers occurred in thirteen transactions, starting with a $3 test on May 20, followed by another $160 transfer on Tuesday. Subsequent transactions ranged from $1.2 million to a staggering $2.2 billion. All of Mt. Gox's coins now reside in a single bitcoin wallet, likely as part of a plan to distribute assets to creditors before October 31, 2024.

BlackRock's ETF Overtakes Grayscale's

BlackRock's spot bitcoin ETF has surpassed Grayscale's to become the largest of its kind. Following a $102 million inflow on Tuesday, BlackRock's IBIT now holds nearly $20 billion in bitcoin, edging out GBTC's $19.7 billion.

This change reflects growing bullish sentiment in the crypto market, particularly after ether ETF filing approvals and increased political support for crypto in the U.S. Interestingly, GBTC saw $105 million in outflows on the same day, highlighting the dynamic nature of investor preferences.

Meme Coins Drive Crypto Gains
Mirroring the surge in GameStop (GME) stocks, which rose 19% in premarket trading on Tuesday, the meme coin sector saw significant gains. Shiba Inu led the pack, climbing as much as 12% in the last 24 hours.

Rennick Palley from Stratos attributes this surge primarily to Asian traders re-entering the market during their trading hours. He sees this as a follow-on effect of excitement around the Ethereum ETF and the U.S. regulatory shift towards a more pro-crypto stance.

Other meme tokens like Pepe (PEPE) and Mog (MOG) have seen even more dramatic increases, rocketing up to 100% in the past week. This surge is seen as a beta bet on the Ethereum ecosystem, riding on the coattails of U.S. listing approvals for spot ether ETFs.

Other Notable Developments:

Elwood Technologies, backed by billionaire Alan Howard, is in talks to sell part of its crypto-focused business.
A Harris Poll survey found that one in three U.S. voters will consider a candidate's crypto stance.
Riot Platforms is poised to consolidate the bitcoin mining sector, according to Bernstein analysts.

Analysis: This week's events underscore the multifaceted and fast-evolving nature of crypto. From network-level changes like Solana's fee restructuring to macro events like Mt. Gox's bitcoin transfers, each development carries potential market-moving implications.

The shift in ETF dynamics, with BlackRock overtaking Grayscale, reflects growing institutional interest and changing investor preferences. Meanwhile, the resurgence of meme coins, triggered by traditional market events like GameStop's surge, highlights the interconnectedness of various market segments.

Image source: Asia Today